Tesco has arrested its 18-month domestic sales slump, but the improved
performance was not enough to stop it suffering falling profits for the
first time in 18 years.

Philip Clarke, chief executive, said that Tesco’s return to growth in the UK
over the summer marked “the first steps in what is going to be a long
journey”.

Sales at UK stores open more than a year rose by 0.1 per cent in the 13 weeks
to August 25, excluding fuel and VAT. That compared with analysts’ forecasts
of flat sales and represents a significant improvement on a first-quarter
decline of